How to issue an asset with its fair market price? - DRAFT

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    A possible solution for this problem is a tender system or tender procedure.
    Central banks use this method to determine interest rate of the credits they give to private banks.

    For Burst Assets a possible use case would look like this:

    You got your project / business with an income stream.
    You describe your project as good as you can to the public, so they everyone can make their own calculation of value.

    As an Asset Issuer you have also to decide the number of shares your Asset will have in total - this number doesn't matter. Also you should make public how many shares you want issue to the public (free float) at the start of your Asset. (Optional: Asset Issuer and other private Shareholders make a commitment not to sell more additional shares until a certain point in the future - known as Lock-up Period)

    Let's say the Asset will have 1 Million shares in total and the Issuer want to issue 5% of it.

    Next step is to announce a bidding phase for investors, e.g. a two weeks time-frame for interested investors to crunch the numbers and make a buy order for your asset. Your job is to provide as much information as you can and do marketing for your asset.

    After the two weeks the Asset issuer has to decide: Retreat completely, because there is not enough interest (and issue to another time) or sell the full promised 5% into all buy orders no matter what.

    Done. Everybody happy.

    This is a draft and a work in progress.

  • Some good info in there for sure 🙂

    Been looking in to starting an asset soon myself, so thanks for this!